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Glossary ACDBE. Airport Concessions Disadvantaged Business Enterprise as deﬁned in 49 CFR Part 23. Airside. With respect to concessions, the post-security area of a terminal that is beyond the security checkpoint. Otherwise, the areas at the airport beyond security including terminal aprons and airﬁeld. ARN. Airport Revenue News. Bar/lounge. Concession primarily offering alcoholic and non-alcoholic beverages with a lim- ited food menu. Café. Limited-service restaurant offering light meals, coffee, and other alcoholic and nonalco- holic beverages covering all parts of the day. CAM Fees. Common-area maintenance fees paid to the airport or to another concessionaire as reimbursement for the maintenance of common (shared) areas, such as food courts. Casual dining restaurant with bar. Restaurant offering hot meals and full bar service, usually with table service and wait staff. Can also apply to a restaurant with limited table service, where orders are placed at a counter and food is delivered to the table. CATS reports. FAA Compliance Activity Tracking System reports ﬁled by all U.S. airports each year. Connecting passenger. Passenger who arrives on one ﬂight and continues his or her trip on another ﬂight without leaving the terminal. Convenience retail. Traditional airport retail concepts providing traditional airport merchan- dise such as reading matter, candy and mints, snacks, and health and beauty aids. Convenience retail includes newsstands, news/gift shops, and newer hybrid retail concessions such as news/bookstores, news/coffee shops, and travel marts. Direct leasing. Concession management approach where the airport leases out concession space to multiple concessionaires. Duty free. Retail shops offering merchandise that is free of import duties, excise taxes, and local and state sales taxes. By law, sales are limited to departing international passengers. Dwell time. Average time in minutes that a passenger spends in the terminal building or part of the terminal building. For example, one airport terminal had an average dwell time of 90 min- utes, including 20 minutes in the pre-security area and 70 minutes in the post-security area. Effective rent. Average percentage rent, calculated by dividing revenue (paid to the airport) by sales (earned by the concessionaire) for a period. 248
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Glossary 249 FAA. Federal Aviation Administration, an agency of the U.S. Department of Transportation. Focus group. A small number of people brought together with a moderator to discuss a spe- ciﬁc issue, product, or topic. Good faith efforts. Efforts to achieve an ACDBE goal or other requirement of 49 CFR Part 23 that, by their scope, intensity, and appropriateness to the objective, can reasonably be expected to meet the program requirement. In-terminal advertising. Display advertising within the terminal building using a variety of media, including banners, wall posters, back-lighted wall displays or dioramas, wall wraps, prod- uct displays, and digital screens. Also includes non-traditional advertising such as sponsorships, advertising on loading bridge exteriors, in-holdroom televisions, in-terminal radio stations, and Wi-Fi access portals. Labor peace. Concession agreement provisions typically requiring proposers to reach prior agreement with relevant labor organizations so that, if selected, there will be no interruption of service during the term of the agreement. Landside. Pre-security areas of the terminal building that are accessible by the general public without passing through security inspection. Leasing manager. Third-party contractor paid a fee by the airport to market, select, and nego- tiate with concession tenants for the airport. Fee managers do not operate any concession spaces and, unlike developers, do not make capital investment in the terminal building. LEED. Leadership in Energy and Environmental Design, a set of environmental building cer- tiﬁcation standards. Living wage. A wage rate set by some cities and counties that is higher than the federal or state minimum wage and is intended to approximate the actual minimum cost of living in a jurisdic- tion. Where enacted by an airport sponsor, living wage rates will apply to concessionaires and others that do business with the airport. Local brand. A local business with a recognized name and a favorable reputation in the local community. MAG or minimum annual guarantee. Minimum yearly amount of rent to be paid to the air- port by a concessionaire or, in some cases, a developer. Market segmentation. Process of deﬁning and subdividing a large homogeneous market into clearly identiﬁable segments having similar needs, wants, or demand characteristics. Master concessionaire. Single concessionaire operating all of the concession space in a cate- gory or all of the space in multiple categories. Meeters and greeters. Individuals who go to the airport to meet and greet arriving passengers. MMG or minimum monthly guarantee. Minimum amount of rent to be paid by a conces- sionaire to the airport each month. National brand. Business that operates a business in most parts of the United States and has established a favorable reputation. O&D passenger. Origin and destination passenger, one who either begins or ends his or her trip at the airport. Differs from a connecting passenger. Part 23. 49 Code of Federal Regulations Part 23, pertaining to airport concession disadvan- taged business enterprises.
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250 Resource Manual for Airport In-Terminal Concessions Prime concessionaire. A single ﬁrm operating approximately one-half or more of the conces- sion space in a category of concession, such as food and beverage or retail. There are usually no more than two prime concessionaires operating in a single category. Productivity factor. Standard measure used to determine supportable concession space at an airport. It is typically measured as the sales per square foot for each concession category that will provide a minimum but reasonable return for both the airport and the concessionaire. Quick-serve. Food served over the counter, often made to order. Includes fast food, most food court units, grab-and-go, and most other self-service concession units. Regional brand. Business that operates units in a deﬁned region around the airport. Revenue. As used in this resource manual, the amounts paid by concessionaires to the airport. (The term “sales” refers to the gross income of the concessionaires.) RFP or request for proposals. Competitive solicitation approach whereby criteria are estab- lished and proposals are evaluated against the criteria, with the proposal receiving the highest score declared the winner. RMU or retail merchandise unit. Small, self-contained retail merchandise unit such as a cart or kiosk. Sales. Gross income of the concessionaire. Sales per enplaned passenger. Average amount spent by one departing (enplaning) passen- ger. Also referred to as passenger spend rate (PSR). SBA. Small Business Administration, an independent agency of the U.S. federal government. Sense of place. Intrinsic characteristics that communicate an airport’s distinctiveness and location. Theming of an airport’s concession program contributes to the creation of a sense of place. SOQ or statement of qualiﬁcations. Solicitation process whereby ﬁrms must provide evi- dence of a certain level of qualiﬁcation in order to be able to participate in a subsequent solici- tation process. Space per 1,000 enplanements. Standard metric used to plan and evaluate the amount of space allocated to a concession program. Specialty coffee. Concession unit featuring premium coffee and espresso-based drinks and may generally sell teas, juices, pastries, and prepackaged salads and sandwiches, depending on the terms of the concession agreement. Specialty entertainment. In-terminal entertainment services such as virtual reality, simula- tors, game rooms, casinos, mini-golf, and indoor driving ranges and other diversions. Specialty retail. A retail shop offering a specialized line of merchandise such as jewelry, leather goods, personal care products, children’s clothing, toys, candy/chocolates, or other merchan- dise. Excludes the convenience retail category. Spend rate. Average amount spent by a departing passenger; the standard metric used to com- pare sales at different airports, different terminals, different locations within terminals, and dif- ferent concessionaires. Street pricing. When set by the airport, a policy requiring concessionaires to price goods and services at levels no greater than the prices for similar goods and services outside the airport. When set by a concessionaire or a developer, a strategy for encouraging sales.
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Glossary 251 Supportable concession space. Theoretical maximum amount of concession space in an air- port that can be commercially supported and that is commercially viable for concession tenants. Third-party developer. Company that subleases most or all of the concession space at an air- port and, in turn, subleases to concessionaires on behalf of the airport. Revenue is shared between the Third-Party Developer and the airport operator. TSA. Transportation Security Administration, an agency of the U.S. Government responsible for airport security inspection. U.S. DOT. United States Department of Transportation. Well-wishers. Individuals who accompany originating departing passengers into the termi- nal to see them off. Worker retention. Program, policy, or requirement to consider hiring the employees of the outgoing concessionaire. Worker retention programs can range from voluntary efforts such as job fairs, to mandatory contractual requirements.